Dongguan Winnerway Industrial Zone Ltd. (000573) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Dongguan Winnerway Industrial Zone Ltd.

Why is Dongguan Winnerway Industrial Zone Ltd. ?

Poor Management Efficiency with a low ROCE of 2.69%

The company has been able to generate a Return on Capital Employed (avg) of 2.69% signifying low profitability per unit of total capital (equity and debt)

Poor long term growth as Net Sales has grown by an annual rate of -7.80% and Operating profit at 7.72% over the last 5 years

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of 4.72%, its profits have risen by 244% ; the PEG ratio of the company is 0.2

Underperformed the market in the last 1 year

The stock has generated a return of 4.72% in the last 1 year, much lower than market (China Shanghai Composite) returns of 21.43%

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Realty)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Dongguan Winnerway Industrial Zone Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Dongguan Winnerway Industrial Zone Ltd.

-1.29%

1.88

35.69%

China Shanghai Composite

21.43%

1.55

13.83%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-7.80%

EBIT Growth (5y)

7.72%

EBIT to Interest (avg)

-1.00

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

Tax Ratio

0.22%

Dividend Payout Ratio

46.51%

Pledged Shares

Institutional Holding

ROCE (avg)

2.69%

ROE (avg)

3.04%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.61

EV to EBIT

-49.04

EV to EBITDA

-108.27

EV to Capital Employed

1.73

EV to Sales

4.29

PEG Ratio

0.16

Dividend Yield

1.21%

ROCE (Latest)

-3.53%

ROE (Latest)

4.18%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

14What is working for the Company

DEBT-EQUITY RATIO (HY)

Lowest at -17.13 %

NET PROFIT(Q)

At CNY 41.74 MM has Grown at 143.34%

INVENTORY TURNOVER RATIO(HY)

Highest at 0.62 times

NET SALES(Q)

At CNY 179.06 MM has Grown at 30.61%

-11What is not working for the Company

NET PROFIT(HY)

At CNY 36.16 MM has Grown at -65.22%

ROCE(HY)

Lowest at -0.15%

RAW MATERIAL COST(Y)

Grown by 67.97% (YoY

Here's what is working for Dongguan Winnerway Industrial Zone Ltd.

Net Profit

At CNY 41.74 MM has Grown at 143.34%

over average net sales of the previous four periods of CNY 17.15 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Debt-Equity Ratio

Lowest at -17.13 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Net Sales

At CNY 179.06 MM has Grown at 30.61%

over average net sales of the previous four periods of CNY 137.1 MM

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Inventory Turnover Ratio

Highest at 0.62 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Here's what is not working for Dongguan Winnerway Industrial Zone Ltd.

Raw Material Cost

Grown by 67.97% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales